Claimed By Longtime Investor Lo Kheng Hong Not Worth Collecting, Unilever Earns Rp3 Trillion Profit In Semester I 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - Despite being hit by the COVID-19 pandemic, PT Unilever Indonesia Tbk (UNVR) in the first half of 2021 managed to record net sales of Rp20.2 trillion (unaudited). The company also posted a net profit of Rp3 trillion, supported by a positive contribution from the food product category.

President Director of PT Unilever Indonesia Tbk Ira Noviarti said the growth of the fast-moving consumer goods (FMCG) market has not yet fully recovered due to the COVID-19 pandemic, causing consumers to remain cautious in choosing consumption patterns in several basic categories. These challenges affect Unilever's growth rate.

"This condition is also coupled with the increase in commodity prices which have begun to affect product costs," he said in an official statement, quoted on Friday, July 23.

Furthermore, Ira explained, to overcome these challenges, UNVR has a strategy that balances short-term and long-term business sustainability. According to him, both are equally important and are manifested into five priority strategies.

The strategy is, first, to encourage market growth through the stimulation of consumer consumption. Second, expanding and enriching the portfolio to value and premium segments. Third, strengthen leadership in innovation and future channels.

Fourth, the implementation of E-Everything in all lines including sales, operations, and data processing. Lastly, UNVR remains at the forefront of implementing sustainable business.

"Although the first half of 2021 is still full of challenges, we are optimistic about the strategy to run a responsible and sustainable business in the long term. This is a difficult time for all of us, but we have been and will continue to be with Indonesia. We are optimistic that if all parties carry out their roles seriously, together we will get through this difficult time and the Indonesian economy will bounce back," concluded Ira.

Previously, veteran investor Lo Kheng Hong revealed the reason why he did not choose PT Unilever Indonesia Tbk (UNVR) shares to be collected. According to the man who is nicknamed the Indonesian Warren Buffet, it is difficult to find a wonderful company at a price that is neither too cheap nor too expensive.

"There are wonderful companies like Unilever but the valuation is very expensive, in terms of price to book (PB) or price per earning ratio (PE) it is very expensive, I have not dared to buy it," said Lo Kheng Hong in a talk show entitled The Art of Value Investing, quoted Monday 19 July.

For information, Unilever Indonesia is a company engaged in the manufacturing, marketing, and distribution of consumer goods including soaps, detergents, margarine, dairy-based foods, ice cream, cosmetic products, tea-based drinks, and fruit juices.

The company's portfolio includes many well-known brands, such as Pepsodent, Pond's, Lux, Lifebuoy, Dove, Sunsilk, Clear, Rexona, Vaseline, Rinso, Molto, Sunlight, Wall's, Blue Band, Royco, Bango, and many more. The company started its commercial operations in 1933.